According to a recent report from the American Bar, home ownership rates amongst millennials continue to be on the decline, dropping 7.3 percent over the last decade. Unfortunately, this isn’t a huge shock, as the housing affordability crisis worsens and new housing policies aren’t proving effective. But what are the causes behind these issues?
First off, it’s a common case of supply and demand. This was conveyed during NAHB’s 2018 Housing & Economic Outlook, as panelists cautioned that demand will continue to outpace construction due to labor and land availability constraints. Meaning, new entry-level buyers (like millennials) will have to contend with rising home prices and mortgage rates.
Additionally, prices in many of the popular metro areas that millennials are flocking to are exorbitant, forcing young renters to spend a substantial amount of their income on cost of living alone, thus preventing them from saving to buy a house. This combined with higher student loan burdens and lower wages makes attaining the American dream of homeownership a near impossibility.
In response to the affordability crisis in relation to rising student loans, some homebuilders are enacting programs to help millennials get out of student loan debt in order to help them finance a home mortgage (USA Today). However, financial planning experts are warning that these programs are simply swapping out student debt for mortgage debt, thus providing no long-term financial benefits. Though the program’s mission seems to take steps to solve the problem, many are calling its approach questionable.
An issue beyond housing affordability is that when millennials are finally able to purchase a home, many times they are not financially prepared for upkeep, and repair/remodel projects.
One way to prepare is having a substantial amount of savings put away for these residential “big ticket” items. Another is to take the time to choose a home (and what it’s built with) wisely. Value-added products like the LP® SmartSide® trim and siding are durable and protect against harsh weather conditions that could cause the need for more frequent upkeep and spending in the long run.
So, while the general rule of thumb remains that a quarter of your income should go to housing payments/rent, in reality, the economic cards are stacked against millennials across America. In the coming years, millennials who are set on purchasing a home may gravitate to more affordable, less sought-after cities with affordable housing. However, until home purchases amongst millennials start to rise, builders are making business adjustments to service other demographics who have the means to invest in home buying today.
When it comes to a remodeling project, one of the first concerns homeowners have is paint color. With a plethora of color options and everchanging color trends, picking the right color to accentuate your home’s exterior can be quite a daunting task. Because picking the right paint colors can be the difference between good and great, we’re taking a deep dive into the color trends of today.Continue Reading
Most re-siding projects are on older homes, so it’s a good bet you’ve seen your share of asbestos siding if you operate in the business of siding renovations. Asbestos is a silicate mineral that was commonly added to cement board siding for durability and resistance to fire and weather during the 1920s to 1980s.
As an architect, putting your stamp of approval on building materials that stand the test of time is one of your top priorities. Multifamily builds when located on the coast, bring their own challenges from the start. With coastal weather conditions, you have unique durability challenges to consider. Coastal weather conditions include increased moisture, heat, humidity, and inclement weather—and your building materials must withstand them all. SAGA Construction, Inc., located on the Outer Banks of North Carolina, is no stranger to the coast’s weather. When they embarked on a recent multifamily project, Cambridge Cove, SAGA executed a design with building materials that would appeal across demographics (homeowners and vacationers alike) while emphasizing durability. Let’s see how they did it.
Once the autumn leaves have fallen and the nights begin to grow longer, it’s the annual signal that it’s time to start decorating for the holidays. And while many homeowners divert their attention to interior holiday décor, giving your home’s exterior a festive punch will ensure it’s a showstopper the moment friends and family pull into the driveaway. Need some outdoor holiday decorating ideas? We compiled the top 2019 exterior decorating trends that will be all the rage this holiday season.